Which entity can conduct business under its own name?

The correct answer is that sole proprietorships and corporations can conduct business under their own name because both structures are recognized legally as separate entities that can on their own, enter into contracts, hold assets, and carry out business operations.

Sole proprietorships, while not distinct from the individual owner in terms of liability, do operate under a name that can be recognized in business transactions. This means that when a sole proprietor registers a business name, they can conduct business under that name, which is essential for branding and customer recognition.

Corporations are distinct legal entities that are separate from their owners (shareholders). They can own property, make contracts, and are required to conduct business in their registered name, which provides them with legal protections and benefits, such as limited liability.

Other business structures, like partnerships, can also conduct business under their own name, but the focus of this question is on those where the entity name is primarily associated with the structure itself, which includes sole proprietorships and corporations. Unincorporated associations, though they can operate under a name, typically do not have the same legal recognition as separate entities in business operations. Thus, the answer accurately reflects the types of entities that can engage in business activities under their own